Retail media networks (RMNs) are becoming increasingly popular, thanks to advancements in in-store technology. According to a new report by the IAB, “Quantifying Retail Media In-Store Success: Measurement & Innovation,” retailers are seeing success with these networks and are investing more in them. This coincides with the National Retail Federation (NRF) conference in New York.
The IAB is also launching a digital out-of-home (DOOH) and in-store retail media working group on February 7th. This group aims to develop a playbook for retailers, agencies, and brands on how to effectively plan media, measure success, and utilize specific in-store technologies.
Why should businesses care about this? According to last year's data, RMN advertisers plan to increase their budget by an average of 11%, with larger brands increasing by 15%. However, most RMN opportunities are through retailer digital channels, such as website search, or off-site advertising, not in-store.
Digging deeper, it's interesting to see how major retailers like Home Depot and Kroger are using RMNs to enhance the shopping experience for customers.
In-store audiences for RMNs tend to be larger than digital channels for most major retail chains. For example, Home Depot has a 35% larger audience in-store compared to their digital channels.
To make the in-store experience more dynamic, retailers are utilizing current and emerging technologies such as smart screens, smart kiosks, and audio programming that can be customized based on location and audience profiles. One major retailer, Best Buy, has deployed over 5,000 beacons in their U.S. stores to engage shoppers and measure traffic patterns.
In-store devices and screens are also being used to gather data and measure the impact of ads. This includes visual sensors, shopping cart and basket sensors, and passive Wi-Fi to count the number of shoppers. These technologies help retailers gain insights into customer behavior and ad performance.
The benefits of RMNs, aided by in-store technology, extend to advertisers and retailers. Real-time data analytics, predictive modeling, dwell time analysis, AI-powered customer segmentation, customized content delivery, and unified data sources all contribute to a better shopping experience and more effective marketing strategies.
Overall, retailers are seeing the value in investing in RMNs and utilizing in-store technology. By leveraging these advancements, businesses can gain valuable insights into customer behavior and preferences, leading to improved marketing efforts and a better shopping experience. Stay up-to-date on the latest martech trends by subscribing to MarTech Daily for free.
Originally reported by Martech: https://martech.org/how-in-store-technology-will-bolster-retail-media-networks/
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